Funds well ahead of the listed benchmark will have the luxury of continuing to focus on their CPI-plus or peer performance expectations and not be too concerned about the YFYS test in the near term, Frontier's Paul Newfield notes.
Australia’s $2.9 trillion of superannuation assets are becoming an increasingly powerful force for action on climate change, but experts are calling for a more holistic approach to equities that covers the entire value chain.
Some of the country’s largest funds have in some cases accrued more than nine-times the operational risk financial reserve requirement set by APRA with a handful of large funds bulking up their general reserves.
A reluctance or lack of appetite by the Australian Prudential Regulatory Authority for enforcement against underperforming superannuation funds has likely played a role in the creation of the Your Future, Your Super performance test, a Senate Committee has heard.
Even in cases where remediation programs have begun or actions have been taken and where remediation is possible, regulators and government remain unclear about how trustees can direct funds to pay without impacting member balances, a House or Reps committee has heard.
Across the globe the transparency of disclosure varied greatly, both between countries and between funds across all the factors that were measured. In some instances there are wild variances between the best and worst performers, the new benchmark reflects.
The $50 billion fund's deputy CIO - brought onto the panel to replace a sick Sam Sicilia - said the fund had enough liquidity amidst the early release scheme to manage "well beyond even the worst scenario we could imagine".